1.10 Is my reasoning (in the earlier post) correct that explains the proportion that B gets correct? Specifically is the maximum EML that can be taken on board limited to 5.25 million?
1.11 Am I right in understanding that the EML is covered only by reinsurer A and B while C, D and E are there to cover extreme cases?
Right now the company can cover up to 5.8million loss when taking into consideration A, B, C and D. Does this mean that the EML can only be up to 5.25million in any case? This is related to my question re 1.1?
If so wouldn't the third surplus treaty be 1:10:10:11 such that we cover 250k while A and B cover 2.5million each and the new reinsurer covers 2.75million?
Last edited by a moderator: Jan 20, 2015